Volkswagen in Talks to Repurpose Factory for Iron Dome

Volkswagen is in discussions with Israel's Rafael Advanced Defense Systems to repurpose its Osnabrück factory in Lower Saxony, Germany, shifting production from automobiles to components for the Iron Dome missile defense system, according to sources familiar with the talks.

The Osnabrück plant, which currently employs about 2,300 workers and primarily assembles the T-Roc Cabriolet convertible, faces an uncertain future as Volkswagen phases out that model by mid-2027. Under the proposed arrangement, the facility would manufacture heavy-duty trucks for transporting missiles, launch platforms, and power generators. The actual interceptor missiles would be produced at a separate site in Germany, though its location has not been finalized. Production of these components could begin within 12 to 18 months, provided factory workers approve the transition and limited investments are made to adapt existing manufacturing lines.

A source with knowledge of the negotiations told the Financial Times that "the aim is to save everybody, maybe even to grow," highlighting the potential to preserve jobs amid Volkswagen's broader restructuring efforts. The German automaker has confirmed it is...